(Closed) buying a house…

posted 8 years ago in Home
Post # 3
Member
2083 posts
Buzzing bee
  • Wedding: May 2010

We actually went in to our bank, sat down with someone and filled out the application for a loan with them. Your husband’s future income shouldn’t contribute to it though, I think they will judge your income based on what it is currently. For us they looked at our credit scores, income, any current debts we had and then told us what we could be preapproved for.

Post # 4
Member
541 posts
Busy bee
  • Wedding: September 2011

We bought our house about a year ago and the loan process was probably the most confusing/worst part. Have you already gotten a pre-approval from a bank? Usually the broker that you worked with to get that would walk you through the loan process after your bid is accepted, and from my one experience they pretty much hold your hand through it telling you what documents they need, what needs to be signed, arranging for the appraisal, etc.

Fiance making more money in a few weeks shouldn’t effect the process too awfully much as long as you qualify now for the amount you are asking for. The documentation that they would ask for (paystubs, tax returns, 401k statements) would be from before that, usually going back for a few months starting at the day you apply for the loan. 

Good luck and I hope everything works out!

Post # 6
Member
541 posts
Busy bee
  • Wedding: September 2011

It might be easiest just to go to the bank that you alreay have accounts with. Or when you go to see the house, talk with the realtor. The usually have reccomendations of brokers they have worked with before, and should also be able to give you an idea of what kind of loans are out there as well as an programs you might qualify for in your area. One of my friends, because she bought the house in her name and the bank only went by her income, was able to qualify for 10% of her down payment to be paid by the county as long as she lived there a certain number of years.

Post # 8
Member
5154 posts
Bee Keeper
  • Wedding: June 2010

My husband and I just went into the bank and filled out an application. They will look at your current income, credit score, debts, how much money you can put towards a down payment, etc

It was a fairly easy process for us. Just go into your bank 🙂

Post # 9
Member
2562 posts
Sugar bee
  • Wedding: July 2010

Me and Darling Husband went through a mortgage broker, that was recommended to us by a friend. We gave them our financial information, they applied to a bunch of banks for us, and then we compared what banks approved us, and decided on which bank we wanted to go through (comparing interest rates, amortization schedules etc etc).

Post # 10
Hostess
18644 posts
Honey Beekeeper
  • Wedding: June 2009

Go to your local bank or a mortgage broker and tell them that you want to apply for a loan.  No company is going to take his future income into account right now.  If you need to base your payments of that amount, then you will need to wait a few months after his new job so you have paystubs to prove his income.

Post # 11
Member
1498 posts
Bumble bee
  • Wedding: August 2011

You should be able to go to your bank (but don’t settle on a mortgage with just any bank before shopping around, you can easily get better rates or differnt products at different places) and get all the information you need on the basics.  Basically, you need to have certain debt to income ratios to qualify for different types of loans.  Doing rough math if you take your gross income, multiply it by 45% and subtract any debts you have (min payments on credit cards, car pmts, things like cell phones and car insurance don’t factor) and that’s the monthly pmt you can qualify for.  That % varies depending on the type of loan it is.  The rate you can qualify for depends a lot on your credit score.

If you don’t have any money down, you will be hard pressed to get a loan now because of new laws and banks are more conservative now with lending because of the housing bust.  But you can qualify with a small % down with FHA loans.

My Fiance is a loan officer, there are so many different moving parts, you MUST go talk to someone who can pull your credit and give you a basic breakdown of the process and what you are looking at with your particular situation.  But again, don’t settle with the first bank you go to unless you KNOW they have access to multiple loan programs (like BOA will only sell you a BOA loan, but they may not have the best loan products for you, same goes for lots of other banks, a broker may charge you addiional % fees but they can offer you tons of products… basically, rates are SUPER low right now and you can save a ton of money if you go with a good bank).

Post # 13
Member
485 posts
Helper bee
  • Wedding: September 2011

If he starts his job nov. 1 it might be a good thing to wait.  They are much tougher on giving out mortgages now, though you can try to fill out an application, see how its goes and then if not well then go back and try again… In the mean time go check out the house, make sure its what its being described as…

Post # 14
Member
223 posts
Helper bee
  • Wedding: June 2011

Mortgage broker: works with multiple banks/lenders and can shop around for you. Depending on the broker, he/she will get your loan through who ever has the lowest rate, the lowest payment, or the highest commission check to him (the BEST circumstance would be that one lender covers all 3, but that is RARE!). 

Bank: if credit is excellent, you have a decent down payment (5-10% good, 20% better), they will likely give you the best rates since they are lending you their money directly. 

Application process: you’ll need to gather last year’s W2s, 2 most recent paystubs, most recent statement from all loans/credit cards (YES, even the deferred student loans). Even though they’re deferred, most lenders will include minimum payment of the student loans UNLESS you can provide proof from the student loan that the deferrment period still has at least 6 months before they need to be repaid. This can be difficult to get from the loan company, so try to get this asap. Depending on the lender, you’ll also need 401k and possibly income taxes last two years.  Basically, start gathering your paperwork on ANYTHING related to how to prove what you earn and what your credit card/car payment expenses are.

MISCELLANEOUS TIPS: 

-You will get the BEST rate with at least 20% down.  For a 70k house, this is 14k.  It might be worth it to wait until FI’s new job allows you to save that. Another benefit to waiting until you have the 14k is that the monthly mortgage payment (and overall interest paid over the next 30 years) will also be lower since you’ll be borrowing less money.

-Multiple credit pulls within 14 days only count as ONE pull.  This means once you give them the ok to pull your credit, SHOP AROUND for the next 10 days and let them pull your credit.  A lot of scummy loan officers will feed you some line of crap about how you shouldn’t let anyone else pull your credit because if they do, your score goes down and they can no longer guarantee their rate quote.  Don’t buy into it. 

-Once you start the application process, ask the loan officer to provide you something called a Good Faith Estimate. This is basically a summary of what they are proposing to do and how much it will cost in fees. It will also tell you how much cash you need to give them to close the deal. 

The general rule of thumb is get all your ducks in a row before talking to the loan officer; it makes the process go smoother, and having ACCURATE information about your income/expenses, etc improves the likelihood that what you get quoted will be very close to what you end up getting. 

Post # 15
Member
690 posts
Busy bee
  • Wedding: May 2011

And may I say, on behalf of all of the people on the east coast, particularly NJ & NY…

ONLY $70k FOR A HOUSE!!!! AGH!!!

The topic ‘buying a house…’ is closed to new replies.

Find Amazing Vendors